SOURCE: Heathrow
January 17, 2025
BY Erin Voegele
London-based Heathrow Airport on Jan. 10 announced it targeting 5% sustainable aviation fuel (SAF) use in 2025. To support that goal, the airport is offering £86 million ($105.27 million) to airlines under its pioneering SAF incentive scheme.
Heathrow launched its SAF incentive scheme in 2022. In 2023, the program supported the use of approximately 70,000 metric tons of SAF, increasing to an estimated 155,000 metric tons in 2024.
The scheme aims to make SAF more affordable to airlines by creating a SAF incentive “pot” that is funded by aeronautical charges. According to Heathrow, airlines that plan to uplift SAF at the airport bid to the pot and receive a rebate.
The program is targeting 3% SAF use at Heathrow for 2025, equating to approximately 187,000 metric tons. The 2025 incentive aims to align with Heathrow’s target to be 1% above the U.K. mandate in 2030, achieving 11% SAF use at the airport.
Advertisement
Advertisement
“Sustainable Aviation Fuel is no longer a future promise—it’s a proven solution that is powering flights worldwide,” said Matt Gorman, director of carbon strategy at Heathrow. “Our SAF incentive scheme, part of our Connecting People and Planet sustainability strategy, has made significant progress and we're now exploring options to set a long-term incentive signal to 2030. We are delighted that government has moved so quickly to legislate the SAF Mandate. We must now accelerate legislation for the SAF Revenue Certainty Mechanism to ensure we can build a domestic industry that will help decarbonize and drive economic growth.”
The U.K.’s SAF mandate entered into force on Jan. 1, 2025. By law, SAF must now account for at least 2% of all jet fuel in flights taking off from the U.K. The mandate is set to expand to 10% in 2030 and 22% in 2040.
Advertisement
Advertisement
Germany-based Mabanaft on April 17 announced it started to supply SAF to airlines at Frankfurt Airport in January. The company said it will deliver more than 1,000 metric tons of SAF to the airport this year under the European SAF mandate.
Neste Corp. released first quarter financial results on April 29, reporting improved renewable fuel demand and increased SAF production. Margins, however, were low and feedstock costs were high.
CVR Energy Inc.’s renewables segment on April 28 reported positive adjusted EBITDA for Q1 2025 despite the expiration of the $1 per gallon blenders tax credit. Renewable diesel production volumes were up for the three-month period.
easyJet and ATOBA Energy, in partnership with World Fuel Services, announce the signing of a memorandum of understanding for the development of long-term supply of SAF for easyJet’s operations in Europe and the U.K.
EVA Air announced the signing of sustainable aviation fuel (SAF) procurement agreements with three major suppliers: AEG FUELS from the U.S., COSMO Oil Marketing Co. Ltd. from Japan, and Formosa Petrochemical Corp. from Taiwan.